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VEGHE
DECLASSIFTED
E.
Depa a 11652, al Sec. letter, 3(E) A and 5-12-36 3(D)
THUNDAY
-7-
ARCHIVES RECORDS 'NATIONAL
AND
W He i HARS Date 6-30-72
SERVICA*
The Prime Minister said things did not zun this way in Iran.
He vould like Mr. McGhee to come to Iran end spend some time there so
he could see for himself whet the real situation W8.S. He a gain expressed
doubt that he could ever get this price accepted.
The Prime Minister suddenly said he would like to st least
settle the question of the refinery and compensation. Thus he would not
go home He could leave the question of the sale and price
of petroleum for settlement at a later date. In reply to e question, he
said that he would be willing to let the refinery importo crude oil from
Koweit, refine it and pay tax on the profit derived therefrom; or, he
indicated that he would also be willing to sell oil to the refinery at
his price of 13 8/- and they could then pay no taxes.
Mr. McGhee then pointed out to the Prime Minister that if he
acted to cut the prices on crude petroleum, all he would do would be
to bring down the price structure in the Persien Gulf, with no corres-
ponding gain for Iran.
The Prine Minister said that everyone would make the decision
they felt was best for them.
Mr. MeGhee then suggested that e board might be set up to
detennine a fair price for the sele of petroleum. He thought the boerd
of directors of NIOC might serve this purpose. Dr. Mossadegh said he
could not agree because this board had a majority of non-Iranians. He
reiterated his desire to reach at least e. settlement of the refinery
and compensation questions, then the question of price could be discussed
further, either through the Americen Embasay in Iran, or by further
discussiona in the United States; or Mr. McGhee could go to Iran to
continue negotiations on this question.
It was then agreed that his experts would acme down to Washington,
end that Mr. and Mr. Nitze would talle to them, though the Secretary
emphasized at this point the need to secure e basic agreement in principle.
He then added that to would like to think this matter over and telk to
Dr. Mossadegh further on it. He, himself, of course, would be leaving on
the following day. Dr. Mossadegh then inquired when he vould have further
talks on these questions, and Mr. McChee indicated that the Prime Minister
would be going out to his farm on Thursday, and that they could talk at
that time, and that if further telke were needed, they could neet subsequently.
Dr. Mossadegh then expressed his warmest thanks to the Secretery
of State for the kindness of his reception and for the time he had given
him. He said thet he wished to express the thanks of the whole Irenien Nation
to the Secretary for the interest and sympathy he had shown then.
CECPER
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Document data
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DTO data
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Context sent to Scholar
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Page context
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"ocrText": "VEGHE\nDECLASSIFTED\nE.\nDepa a 11652, al Sec. letter, 3(E) A and 5-12-36 3(D)\nTHUNDAY\n-7-\nARCHIVES RECORDS 'NATIONAL\nAND\nW He i HARS Date 6-30-72\nSERVICA*\nThe Prime Minister said things did not zun this way in Iran.\nHe vould like Mr. McGhee to come to Iran end spend some time there so\nhe could see for himself whet the real situation W8.S. He a gain expressed\ndoubt that he could ever get this price accepted.\nThe Prime Minister suddenly said he would like to st least\nsettle the question of the refinery and compensation. Thus he would not\ngo home He could leave the question of the sale and price\nof petroleum for settlement at a later date. In reply to e question, he\nsaid that he would be willing to let the refinery importo crude oil from\nKoweit, refine it and pay tax on the profit derived therefrom; or, he\nindicated that he would also be willing to sell oil to the refinery at\nhis price of 13 8/- and they could then pay no taxes.\nMr. McGhee then pointed out to the Prime Minister that if he\nacted to cut the prices on crude petroleum, all he would do would be\nto bring down the price structure in the Persien Gulf, with no corres-\nponding gain for Iran.\nThe Prine Minister said that everyone would make the decision\nthey felt was best for them.\nMr. MeGhee then suggested that e board might be set up to\ndetennine a fair price for the sele of petroleum. He thought the boerd\nof directors of NIOC might serve this purpose. Dr. Mossadegh said he\ncould not agree because this board had a majority of non-Iranians. He\nreiterated his desire to reach at least e. settlement of the refinery\nand compensation questions, then the question of price could be discussed\nfurther, either through the Americen Embasay in Iran, or by further\ndiscussiona in the United States; or Mr. McGhee could go to Iran to\ncontinue negotiations on this question.\nIt was then agreed that his experts would acme down to Washington,\nend that Mr. and Mr. Nitze would talle to them, though the Secretary\nemphasized at this point the need to secure e basic agreement in principle.\nHe then added that to would like to think this matter over and telk to\nDr. Mossadegh further on it. He, himself, of course, would be leaving on\nthe following day. Dr. Mossadegh then inquired when he vould have further\ntalks on these questions, and Mr. McChee indicated that the Prime Minister\nwould be going out to his farm on Thursday, and that they could talk at\nthat time, and that if further telke were needed, they could neet subsequently.\nDr. Mossadegh then expressed his warmest thanks to the Secretery\nof State for the kindness of his reception and for the time he had given\nhim. He said thet he wished to express the thanks of the whole Irenien Nation\nto the Secretary for the interest and sympathy he had shown then.\nCECPER"
}